Alabama Among States Where Families Spend the Most on Health Insurance, Study Finds
A new study by personal finance website WalletHub has placed Alabama among the top 10 states where residents spend the most on health insurance relative to income. With average monthly premiums of $523, Alabamians are paying approximately 10.12% of the median monthly household income toward health coverage — ranking the state 9th highest nationwide.
https://wallethub.com/edu/states-where-people-spend-the-most-least-on-health-insurance/145713
The study comes amid a backdrop of rising premiums across the United States. In 2024 alone, health insurance costs increased by 6% for individual plans and 7% for family plans, continuing a trend of inflation-driven hikes that have strained household budgets from coast to coast.
WalletHub’s analysis focused on silver-tier health insurance plans, which offer a balance between premiums and out-of-pocket costs. By comparing average premiums in each state with median household income data, the study revealed significant disparities in affordability across the country. In the most expensive states, such as Vermont and West Virginia, health insurance can consume nearly 20% of the median monthly income. In contrast, residents in states like New Hampshire and Maryland pay less than 5%.
Alabama’s placement in the top 10 reflects the growing financial burden on families seeking adequate health coverage. The cost of premiums, even for mid-level plans, can significantly affect a household’s ability to afford other essentials like housing, transportation, and food.
While careful budgeting may help offset some of these costs, the study emphasizes that geographic location plays a major role in how much residents are expected to pay for insurance — often beyond individual control.
Analysts warn that the consequences of unaffordable insurance can be severe. Without coverage, many Americans risk accumulating substantial medical debt, which remains one of the leading causes of personal bankruptcy.
WalletHub’s findings serve as a reminder of the continuing challenges families face in securing affordable health care, particularly in states like Alabama where premiums are among the highest in proportion to
